Understanding the Recent 6-3 Supreme Court Decision on Agency Deference
July 1, 2024
The recent 6-3 Supreme Court decision in the Loper Bright case overturns the 1984 “Chevron deference” precedent, rejecting the practice of federal courts deferring to governmental agencies on legal interpretations of ambiguous statutory language.
The impact of this ruling is significant as it shifts the balance of power between agencies and the judiciary in interpreting laws and deciding the best ways to apply them. Moving forward, federal courts are likely to engage in a more thorough review of agency interpretations, rule-making and actions.
- This decision, the Supreme Court’s ruling last week rejecting the SEC’s in-house enforcement of securities fraud claims, and the recent decision of the U.S. Fifth Circuit Court of Appeals to vacate the SEC’s Private Fund Adviser Rules, significantly limit the SEC’s reach over private fund advisers. However, this will likely not impact the SEC’s general focus on fiduciary considerations and the duty to disclose actual or potential conflicts of interest in their examinations, investigations, and enforcement sweeps of investment advisers.
The 6-3 decision, along ideological lines, discards a 1984 precedent directing federal courts to defer to agency legal interpretations when the statutory language passed by Congress is ambiguous.
View referenced article
Author(s)
Related Insights
October 5, 2026
Foley Viewpoints
Texas Comptroller’s Proposed Amendment to Eliminate Double Taxes on Data Processing Services
On September 30, 2026, the Texas Comptroller signed an executive order directing his office to amend the sales tax data processing services regulation, 34 Tex. Admin. Code § 3.330. The proposed amendment would remove marketplace and platform fees from the definition of taxable data processing services. The amendment is only at the proposal phase and has not yet been adopted.
October 5, 2026
Foley Viewpoints
Record Startup Shutdowns Reflect a Market That Is Moving Forward
This year, more venture-backed companies shut down than at any point on record, according to data published last week by Andreessen Horowitz. The largest share of those closures comes from companies founded between 2019 and 2021, a period when interest rates were near zero and capital was easy to raise.
October 2, 2026
Foley Viewpoints
Hard Things: Chris Yeh Says Physical AI Needs More R2-D2 and Less C-3PO
On September 28, 2026, together with our friends at Mavka Capital, Foley & Lardner Silicon Valley hosted the fourth installment of our “Hard Things” series for founders, funders and friends that are focused on building physical AI companies. The highlight of the evening was Mavka's Vitaly Golomb interview of Chris Yeh, co-author of “Blitzscaling,” about doing just that with companies building in the physical AI space.